10th Circ. Won't Let Mahalo Directors Skirt Debt-Shifting Suit

Law360, Los Angeles (July 17, 2013, 7:30 PM EDT) -- The Tenth Circuit ruled Wednesday that Mahalo Energy Ltd.'s Canadian officers and directors must face claims that they schemed to line their pockets by saddling an Oklahoma-based subsidiary with debt, saying the officials had enough ties to the now-bankrupt subsidiary to justify Oklahoma jurisdiction. 

In a published decision, the three-judge panel said an Oklahoma federal court had erred in granting a motion by Mahalo's Canadian officers and directors to dismiss the case for lack of jurisdiction, saying that, while none of the alleged breaches of duty originated...
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Case Information

Case Title

Newsome et al v. Gallacher et al

Case Number



Oklahoma Northern

Nature of Suit

Contract: Other


Gregory K Frizzell

Date Filed

March 7, 2011

Law Firms

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